State of the market: the American found the bottom

After disappointing data on inflation in the US, the US currency remained under pressure across the entire spectrum of the market, which triggered the formation of a downtrend. Trading on Monday closed with a noticeable increase of the US dollar index on the strengthening of 10-year US state bonds to psychology 3%, which eventually led to the renewal of demand for the dollar.

Stock indices of the Asian-Pacific region were opposite under the pressure of growth of profitability of the US state bonds and ambiguous data on China:

• The volume of industrial production in China (y/y) is 7.0%, the forecast is 6.4%.
• Investments in China’s fixed capital (y/y) is 7.0%, the forecast is 7.4%.

Statistics on China, despite partial justification of expectations in the last year of production and investment, keeps a downward trend, which increased pressure on the region’s stock exchanges and is likely to affect the European session.

The US dollar index, in turn, managed to fight off the support level at 92.40 (Fibo.2.6 from the April low), thus indicating the correction and opening of the road to resistance levels: 92.80 and 93.00. Supported by the marks: 92.50 and 92.30.

Hanzenko Anton